Stock trading limit order coupled link (lock)

Abstract

This invention has the potential to generate very good return on investments from stocks that are conservative in movement. This invention will greatly benefit investors that do not have the time to constantly trade stock yet want to take advantage of normal price fluctuations. The Limit Order Coupled LinK (LOCK) invention, for example, will take a buy order, complete the transaction at the specified price, then automatically resubmits a new order to sell at a specified higher price. If specified, the process can automatically cycle through the buy-sell process a set number of time allowing the investor to take advantage of intra-day market moves and normal stock price fluctuations with no personal investor evolvement. The LOCK order, with set profit margins, allows on-line traders and brokers to place one order, which will automatically generate logical, sequenced additional orders returning a profit on each transaction. LOCK will benefit both the investor and the stock trading company.

What is claimed is: 
     
         1 . A method executed by a computer at a host securities broker, comprising the steps of:
 receiving a customer order over a communication network at the host securities broker to trade a security, the customer order comprising a first condition that specifies when to execute a first order for trading the security, and a second condition that specifies when to execute a second order for trading the security after the first condition has been satisfied;   transmitting from the host securities broker the customer order for execution at the securities exchange; and   receiving at the host securities broker notification of the execution of the customer order at the securities exchange.   
     
     
         2 . The method of  claim 1 , wherein the first condition includes a current market price, a specified price, or a limit price. 
     
     
         3 . The method of  claim 2 , wherein the second condition is specified as a percentage difference from the specified price, an amount of change from the specified price, or a fixed price. 
     
     
         4 . The method of  claim 1 , wherein the first order includes a period of time for which the first order and the second order are valid. 
     
     
         5 . The method of  claim 4 , wherein the period of time can be specified in hours, days, months or years. 
     
     
         6 . The method of  claim 4 , wherein the period of time includes a designation where the first order and the second order are good until cancelled. 
     
     
         7 . The method of  claim 1 , wherein the first order includes a first quantity of the security being bought in the first order and a second quantity of the security being sold in the second order. 
     
     
         8 . The method of  claim 1 , wherein the first order includes a number of additional buy-sell iterations, and wherein the method includes the steps of repeating the method steps for each of the number of the additional buy-sell iterations. 
     
     
         9 . The method of  claim 9 , wherein the price of the security in each of the additional buy-sell iteration is automatically and incrementally modified. 
     
     
         10 . The method of  claim 1 , wherein the communication network is the Internet. 
     
     
         11 . A method executed by a computer at a host securities broker, comprising the steps of:
 receiving a customer order over a communication network at the host securities broker to trade a security, the customer order comprising a first condition that specifies when to execute a first order for trading the security, and a second condition that specifies when to execute a second order for trading the security after the first condition has been satisfied;   transmitting from the host securities broker the customer order for execution at the securities exchange; and   receiving at the host securities broker notification of the execution of at least one of the customer order, the first order and the second order at the securities exchange.   
     
     
         12 . A computer of a host securities broker that is configured to communicate with a securities exchange, comprising:
 a computer that is configured to receive a customer order over a communication network at the host securities broker to trade a security, the customer order comprising a first condition that specifies when to execute a first order for trading the security, and a second condition that specifies when to execute a second order for trading the security after the first condition has been satisfied, transmitting the customer order from the host securities broker to the securities exchange, and receiving at the host securities broker notification of the execution of at least one of the customer order, the first order and the second order at the securities exchange.   
     
     
         13 . A method executed on one or more servers associated with a host securities broker from stored, computer-executable instructions for automatically trading a security in a sequence of transactions at a securities exchange, comprising the steps of:
 receiving a customer order over a communications network at the one or more servers of the host securities broker for trading a security, the customer order comprising a first condition that specifies when to execute a first order for trading the security, and a second condition that specifies when to execute a second order for trading the security after the first condition has been satisfied;   transmitting from the host securities broker the customer order for execution at the securities exchange; and   receiving at the host securities broker notification of the execution of the customer order at the securities exchange.